A bank's earnings performance affects its safety and soundness. Earnings may be retained by the bank, boosting its capital buffer, or be used to address problematic loans, likely making the bank more resilient in times of trouble. Conversely, losses lessen a bank's ability to do those things.
On Bankrate's earnings test, Atlantic Stewardship Bank scored 14 out of a possible 30, failing to reach the national average of 16.52.
Return on equity, calculated by dividing net income (profit, essentially) by total equity, is one key measure of a bank's earnings. Atlantic Stewardship Bank's most recent annualized quarterly return on equity was 7.29 percent, below the national average of 9.28 percent.
The bank reported net income of $2.8 million on total equity of $90.5 million for the twelve months ended June 30, 2017. The bank experienced an annualized return on average assets, or ROA, of 0.67 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.